OneStack has raised Rs 12.5 crore in a funding round led by new investor Shepherd’s Hill, with participation from existing backers Pentathlon Ventures and AVNM Ventures. The funding will support the company’s expansion as smaller financial institutions adopt digital banking and payment services under their own brands.
Through OneStack’s platform, cooperative banks are now live as both UPI Issuers and Acquirers directly with the National Payments Corporation of India (NPCI), operating under their own bank handles. This enables them to issue UPI IDs to customers, onboard merchants and settle payments through their own infrastructure. Banks can also retain customer relationships, transaction data and payment-related revenue.
With this round, OneStack has raised more than Rs 45 crore across four funding rounds. Its investors include Pentathlon Ventures, 9Unicorns, growX Ventures, Stride Ventures, Samved VC, Silicon Road Ventures and Venture Catalysts. The company has expanded from a white-label mobile banking provider into a full-stack banking technology platform, adding its OneCBS core banking system, bank-branded SoundBox for merchants, and its own UPI switch and PSP stack.
The fresh capital will be directed towards market expansion across cooperative banks and NBFCs, along with product development in payments, core banking and regulatory compliance. The company is also extending its platform to NBFCs through customer verification and fraud reporting tools. Its compliance offerings include integration with the Indian Cyber Crime Coordination Centre (I4C). OneStack is an Aadhaar OVSE technology service provider, has integrated eKYC Setu, and holds RuPay Debit Card (Issuance) certification and SU3J licences under credit bureaus.
Founded by Amit Kapoor, OneStack provides digital infrastructure that enables smaller financial institutions to offer banking services without having to build technology systems independently. Its platform combines mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and the OneCBS core banking system. Kapoor previously co-founded and led payments company Airpay.
Amit Kapoor, Founder & CEO of OneStack, said, “Cooperative banks have always had their communities’ trust, but on UPI they were disconnected from their own customers. Today our partner banks are live as UPI Issuers and Acquirers directly with NPCI, under their own handles. That puts the bank, not an intermediary, at the centre of every payment its customers make. With MDR back on UPI, owning both sides of the payment is now a revenue opportunity for every cooperative bank. With this capital, we will take our payments, core banking and compliance products to more cooperative banks and bring the same capabilities to NBFCs.”
OneStack has partnered with a large private-sector bank that sponsors more than 250 cooperative banks, providing a route to expand its UPI issuing, merchant acquiring and wider banking platform across the network. It has also been onboarded as a technology service provider on Sahakar Sarathi, a shared services entity promoted by NABARD, NCDC and rural cooperative banks. The company currently serves more than 200 banks across India, including state cooperative banks, district central cooperative banks (DCCBs) and non-scheduled urban cooperative banks (NSUCBs).
The funding comes as UPI merchant payments above Rs 2,000 carry a merchant discount rate (MDR) of 0.40 per cent, capped at Rs 300 per transaction, ending six years of zero-MDR UPI. The charge is shared among the issuing bank, acquiring bank, payment service providers and NPCI, with industry estimates placing the annual pool at up to Rs 16,000 crore. Cooperative banks operating directly as both UPI Issuers and Acquirers can earn from both sides of merchant payments.
India’s cooperative banking network represents a sizeable market for shared technology infrastructure. NABARD’s 2024–25 annual report records 34 state cooperative banks and 351 district central cooperative banks, together operating nearly 15,900 branches as of March 2025. The urban segment includes 1,457 urban cooperative banks with Rs 7.38 lakh crore in assets, according to the RBI. Their technology requirements cover digital payments, customer onboarding, account management, cybersecurity and regulatory reporting.
Ashutosh Ghanekar, General Partner at Shepherd’s Hill, said, “We’re excited to partner with Amit Kapoor and the OneStack team as they keep building the digital infrastructure that brings India’s cooperative banks and the millions they serve onto modern financial rails.”
Sandeep Chawda, Managing Partner at Pentathlon Ventures, said, “Our decision to back OneStack again reflects our conviction in both the opportunity and the founders’ ability to execute. When we first invested, we saw a large, underserved cooperative banking ecosystem in need of a world leading Indian financial technology such as UPI. Amit and the team have continued to build toward that opportunity, and serve the customers of these banks who benefit from world-leading Indian Fintech. We’re excited to support them through their next phase of growth.”
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